We show that firms intermediating trade have incentives to overinvest in financial expertise, and that these investments can be destabilizing. Financial expertise in our model improves firms' ability to accurately estimate value when trading a security. It creates adverse selection, which under...

I present the following proposal: information revealed during non-cartel investigations by competition law enforcement authorities, such as evaluation of M&As or investigation of monopolization (dominance) conduct, should be directly used to investigate and prosecute cartels. Currently, in...

We develop a sequential trade model of Iceberg order execution in a limit order book. The Iceberg-trader has the freedom to expose his trading intentions or (partially) shield the true order size against other market participants. Order exposure can cause drastic market reactions ('market...

I present the following proposal: information revealed during non-cartel investigations by competition law enforcement authorities, such as evaluation of M&As or investigation of monopolization (dominance) conduct, should be directly used to investigate and prosecute cartels. Currently, in...

We develop a sequential trade model of Iceberg order execution in a limit order book. The Iceberg-trader has the freedom to expose his trading intentions or (partially) shield the true order size against other market participants. Order exposure can cause drastic market reactions ("market...

In recent years, the liquidity of many fixed income markets has declined as banks have stepped away from their traditional role as market makers, triggering sharp market movements, as, for example, happened on October 15, 2014 when the yield of the 10 year Treasury experienced a 37 basis point...

Many trends in the world wheat market might explain the extreme price movements on the U.S. wheat futures markets in 2007/08 and 2010. But the different price reactions on the three wheat futures markets raise doubt if only supply and demand moved wheat future prices. The question arises if the...

The federal government spent $92 billion in direct and indirect subsidies to businesses and private-sector corporate entities - expenditures commonly referred to as corporate welfare - in fiscal year 2006. Supporters of corporate welfare programs often justify them as remedying some sort of...

Rice is the world's most important food commodity and also the most protected and subsidized. The U.S. rice program is no exception. The U.S. government supports domestic rice production through tariffs on imported rice and direct taxpayer subsidies based on production, prices, and historical...